EQS-News: AT&S Austria Technologie & Systemtechnik AG / Key word(s):
Annual Results/Forecast
AT&S increases revenue in a challenging market environment

15.05.2025 / 07:04 CET/CEST
The issuer is solely responsible for the content of this announcement.

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AT&S increases revenue in a challenging market environment

 

• Revenue 2024/25 increases to € 1,590 million
• Sale of AT&S Korea leads to profit for the year of € 90 million
• Cost optimization and efficiency program continued
• Customer diversification successfully advanced
• Quarterly rather than annual guidance due to current uncertainty about
global development

 

Leoben – AT&S increased revenue slightly in an overall difficult market
environment. “The market situation in the past financial year confronted
us with many challenges. Thanks to starting our transformation process
early, we nevertheless managed to partially compensate for the pricing
pressure and even increase revenue,” explains CFO Petra Preining. “As a
result of the strategic decision to sell the plant in Korea and to focus
on our core business, we can also report earnings per share of € 1.86,”
Preining adds. The new CEO, Michael Mertin, further explains, “We plan to
use the profit for the year to return to profitable growth and to deliver
an increase in company value.”

 

In comparison to the prior-year period, consolidated revenue rose slightly
to € 1,590 million in the financial year 2024/25 (PY: € 1,550 million).
AT&S recorded positive volume development during the reporting period,
which compensated for the persistent high price pressure for both printed
circuit boards and IC substrates.

 

EBITDA rose by 97% from € 307 million to € 606 million. The improvement in
earnings is predominantly attributable to the sale of the plant in Korea.
Despite the positive development, AT&S is intensively continuing its
comprehensive cost optimization and efficiency program in order to counter
effects such as price pressure and inflation resulting from the persisting
difficult market environment. In addition to price pressure, start-up
costs in Kulim, Malaysia, and Leoben, Austria, as well as costs related to
the cost optimization and efficiency program had a negative impact on
earnings. Adjusted for these costs and the positive effect from the sale
of the plant in Korea, EBITDA amounted to € 408 million (PY:
€ 384 million), which corresponds to an increase by 6%.

 

The adjusted EBITDA margin was further increased and amounted to 25.7%
(PY: 24.8%). The reported EBITDA margin (not adjusted for start-up and
restructuring costs) amounted to 38.1% (PY: 19.8%).

 

Depreciation and amortization increased by € 52 million to € 328 million
(21% of revenue). EBIT rose from € 31 million to € 277 million. The EBIT
margin amounted to 17.5% (PY: 2.0%). Finance costs – net declined from
€ -50 million in the previous year to € -83 million primarily due to
higher interest expenses. Driven by the sale of the plant in Korea, profit
for the year increased from € -37 million to € 90 million, leading to an
increase in earnings per share by € 3.25 from € -1.39 to € 1.86.

 

Cash flow from operating activities fell to € -75 million in the financial
year 2024/25 (PY: € 653 million). The company’s international factoring
program was reorganized and started in the first quarter of 2025/26.

 

 

 

 

 

Key figures

in € million Q4 2024/25 Q4 Change FY FY Change
2023/24 in% 2024/25 2023/24 in%
Revenue 393 345 14 1,590 1,550 3
EBITDA 374 40 >100 606 307 97
EBITDA adjusted^1) 76 64 20 408 384 6
EBITDA margin (in %) 96.2 11.5 - 38.1 19.8 -
EBITDA margin adjusted 19.4 18.4 - 25.7 24.8 -
(in %)^1)
EBIT 279 -32 - 277 31 >100
EBIT adjusted^1) -15 -6 >100 97 113 -14
EBIT margin (in %) 70.9 -9.3 - 17.5 2.0 -
EBIT margin adjusted (in -3.9 -1.7 - 6.1 7.3 -
%)^1)
Profit/loss for the year 185 -44 - 90 -37 -
ROCE (in %)^1) n.a n.a - 7.0 0.6 -
Net CAPEX 87 157 -44 415 855 -52
Cash flow from operating -45 156 - -75 653 -
activities
Earnings per share 4.65 -1.23 - 1.86 -1.39 -
(in €)
Number of employees^2) 12,963 13,829 -4 13,261 13,828 -6

^ 

^1) Adjusted for start-up and restructuring costs as well as effects from
the sale of the plant in Korea

^2) Incl. leased personnel, average. As at March 31, 2025: 12,620

 

Total assets declined by 1.1% to € 4,622 million in the financial year
2024/25. The equity ratio improved by 2.6 percentage points to 23.3% due
to the profit for the year as well as positive exchange rate effects in
other comprehensive income (OCI).

 

Cash and cash equivalents decreased to € 485 million (March 31, 2024:
€ 676 million). In addition, AT&S has unused credit lines of € 256 million
to secure the financing of the future investment program and short-term
repayments. The net debt/EBITDA ratio decreased from 6.1 (as of December
31, 2024) to 2.5.

 

Sale AT&S Korea

AT&S successfully completed the sale of the plant in Ansan, Korea, to the
Italian company SO.MA.CI.S. as of January 31, 2025, thus further
sharpening the Group’s strategic profile. The purchase price (equity
value) amounted to € 405 million and approximately € 17 million in
interest income (equity ticker). The transaction is offset by a disposal
of carrying amount of € 43 million (as of January 31, 2025) and resulted
in cash inflows before tax of € 353 million (after tax: € 317 million).
EBITDA increased by roughly € 325 million as a result of the sale. The
gain from the sale will not be included in the adjusted EBITDA margin.

 

 

 

Cost optimization and efficiency program

Cost saving efforts were again stepped up significantly in the financial
year 2024/25 and all investments underwent thorough review. Compared to
the previous year, the cost base was sustainably reduced by € 120 million.
In order to compensate for effects from the ongoing challenging market
environment as well as the start-up costs from the additional production
lines in Kulim, the measures implemented so far will be continued in the
financial year 2025/26. The target for the current financial year is to
sustainably save an additional € 130 million.

 

Dividend

In order to strengthen the balance sheet position, the Management Board
will propose to the Annual General Meeting on July 3, 2025, subject to the
approval of the Supervisory Board, not to distribute a dividend for the
financial year 2024/25 (PY: 0.00 € per share).

 

Expected market environment

Although there have been signs of easing in recent days, the smoldering
trade conflict between the USA and the rest of the world – in particular
China – remains the main uncertainty factor for the expected market
environment. The development of the different market segments currently
shows significant discrepancies. While volume in the areas of mobile
devices, computers and communication infrastructure proves to be stable
and has shown seasonal growth, the automotive segment is stagnating, and
the industrial segment continues to be weak. AT&S expects this weakness,
which primarily affects Europe, to continue into the next financial year.
Although overall PCB prices declined to a lesser degree than in the
previous year, price pressure is persisting to a large extent. In the area
of substrates, pressure on prices remains unchanged.

 

In the printed circuit board segment, it is above all mobile devices, the
armament industry and data centers that show positive forecasts and drove
the PCB market in the last quarter. In addition to increased investments
in servers, the related communication infrastructure is being further
expanded. At the same time, lower demand for e-mobility and a general
economic weakness continue to burden demand for automotive and industrial
printed circuit boards. Automotive and industrial inventory levels are
also still high and are currently being reduced.

 

In the area of IC substrates, the market benefited from the recovery of
client computing demand and special AI chips, whereas the classic server
segment continues to be subdued. An upturn is largely dependent on a
general economic recovery and is therefore not expected this year.

 

Outlook 2025/26

It is expected that, in the coming months, the US government will provide
a clear picture of how it intends to deal with tariffs on goods imported
into the USA in the future. While AT&S does not expect such a decision to
result in an immediate substantial impact on its own products, it may have
a significant influence on its customers’ end products – and consequently
on the demand for AT&S products. The Management Board therefore decided to
wait until the effects of potential decisions have been coordinated with
key customers before publishing an annual guidance for 2025/26.

 

Rather than an annual guidance, the company is announcing its expectations
for the first quarter of 2025/26. The management is planning investments
of roughly € 65 million (Q1 2024/25: € 93 million). In the other quarters
of the financial year, the company expects the investment volume to be
higher. The majority of these investments will be used for the expansion
of IC substrate production at the new plant in Kulim.

 

In the first quarter of the financial year 2025/26, the management has
been observing that the volatile order behavior of a key customer is
continuing and the weakness of the European automotive and industrial
markets is persisting. High-volume production at the new plant in Kulim
has started, but start-up costs for further production lines will continue
to burden the earnings/revenue ratio in the coming months. The company
expects to generate revenue of approximately € 400 million in the first
quarter (Q1 2024/25: 349 million); the expected EBITDA margin, at around
16%, will reflect the above-mentioned start-up costs of additional
production lines (Q1 2024/25: 18.5%).

 

Outlook 2026/27

The production capacity expansion in Kulim and the expansion of the site
in Leoben are still developing positively despite the currently
challenging global economic situation. AT&S currently assumes that revenue
of approximately € 2.1 to € 2.4 billion will be generated in the financial
year 2026/27 and expects an EBITDA margin of 24 to 28%. This forecast
neither includes a potential escalation of the currently smoldering trade
dispute nor potential revenue from the second plant built by AT&S in
Kulim. The management monitors the currently tense geopolitical situation
very carefully in order to be able to respond to developments at any time
and to make strategic adaptations.

 

 

AT&S Austria Technologie & Systemtechnik Aktiengesellschaft – Advanced
Technologies & Solutions

AT&S is a leading global manufacturer of high-end IC substrates and
printed circuit boards. AT&S industrializes leading-edge technologies for
its core business segments Mobile Devices & Substrates, Automotive &
Aerospace, Industrial and Medical and high-performance computing for VR
and AI applications. AT&S has a global presence with production sites in
Austria (Leoben, Fehring) as well as plants in India (Nanjangud) and China
(Shanghai, Chongqing). A new high-end production site for IC substrates
has been established in Malaysia (Kulim). In Leoben, a European competence
center including series production for IC substrate technologies has been
built, which will be officially opened in June 2025. Both sites started
production in the financial year 2024/25. The company currently employs
13,000 people. For further information please visit [1] www.ats.net

 

Media download:

In the AT&S media portal [2] https://ats.canto.de/v/press you will find
constantly updated picture material on AT&S.

 

 

 

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15.05.2025 CET/CEST This Corporate News was distributed by EQS Group.
www.eqs.com

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Language: English
Company: AT&S Austria Technologie & Systemtechnik AG
Fabriksgasse 13
8700 Leoben
Austria
Phone: +43 (1) 3842200-0
E-mail: ir@ats.net
Internet: www.ats.net
ISIN: AT0000969985, AT0000A09S02
WKN: 922230
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange;
Vienna Stock Exchange (Official Market)
EQS News ID: 2137956

 
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References

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